Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns.The joint cost curve is:
C_E,F(q₁,q₂)= 75q₁ + 125q₂ - 20 ,
where q₁ is the number of evening gowns and q₂ is the number of formal gowns Trisha produces.If Trisha produces evening gowns alone,the cost function is: C_E(q₁)= 75q₁.
If Trisha produces formal gowns alone,the cost function is: C_F(q₂)= 125q₂.Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.

Question

Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns.The joint cost curve is:
C_E,F(q₁,q₂)= 75q₁ + 125q₂ - 20

Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns.The joint cost curve is: C<sub>E,F</sub>(q<sub>1</sub>,q<sub>2</sub>)= 75q<sub>1</sub> + 125q<sub>2</sub> - 20 , where q<sub>1</sub> is the number of evening gowns and q<sub>2</sub> is the number of formal gowns Trisha produces.If Trisha produces evening gowns alone,the cost function is: C<sub>E</sub>(q<sub>1</sub>)= 75q<sub>1</sub>. If Trisha produces formal gowns alone,the cost function is: C<sub>F</sub>(q<sub>2</sub>)= 125q<sub>2</sub>.Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.

,
where q₁ is the number of evening gowns and q₂ is the number of formal gowns Trisha produces.If Trisha produces evening gowns alone,the cost function is: C_E(q₁)= 75q₁.
If Trisha produces formal gowns alone,the cost function is: C_F(q₂)= 125q₂.Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.

Quizplus · Accepted Answer

The Answer of Trisha's Fashion Boutique can jointly produce evening gowns and formal gowns.The joint cost curve is: C_E,F(q₁,q₂)= 75q₁ + 125q₂ - 20 , where q₁ is the number of evening gowns and q₂ is the number of formal gowns Trisha produces.If Trisha produces evening gowns alone,the cost function is: C_E(q₁)= 75q₁. If Trisha produces formal gowns alone,the cost function is: C_F(q₂)= 125q₂.Calculate Trisha's degree of economies of scope if she produces 25 evening gowns and 9 formal gowns.

Trisha's Fashion Boutique Can Jointly Produce Evening Gowns and Formal